In the fourth quarter of 2025, RTX delivered sales of $24.2 billion, marking a 12% year-over-year increase driven by 14% organic growth. Adjusted EPS rose 1% to $1.55, surpassing consensus estimates, while free cash flow reached $3.2 billion, reflecting robust operating cash conversion. Commercial engine demand and aircraft aftermarket services supported Pratt & Whitney’s 25% sales jump, and Collins Aerospace achieved 3% top-line growth despite the divestiture of Simmonds Precision Products, driven by widebody OE volume and higher spare-parts sales. These results illustrate RTX’s ability to leverage portfolio strengths and disciplined cost management to exceed market expectations.

RTX has guided 2026 adjusted sales between $92 billion and $93 billion, implying organic growth of 5%–6%, and forecasted adjusted EPS of $6.60–$6.80. Free cash flow is expected in the range of $8.25 billion to $8.75 billion, supported by backlog conversion—currently at $268 billion, split $161 billion commercial and $107 billion defense—and ongoing operational efficiencies. Leadership reiterated plans to invest in capacity expansion for propulsion systems and missile defense production lines, positioning RTX to capitalize on elevated global aerospace demand and sustained defense modernization programs.

RTX’s Raytheon division secured a $200 million contract with TTM Technologies to supply components for the Lower Tier Air and Missile Defense Sensor over three years, and was awarded a $197 million U.S. Air Force contract to deliver seven advanced MS-110 multispectral reconnaissance pods to the Polish Air Force. These awards enhance RTX’s backlog depth and diversify customer mix, with MS-110 contracts extending through August 2031 and integrating AI-driven imagery processing capabilities that improve surveillance responsiveness. Such wins reinforce RTX’s leadership in next-generation air and missile defense solutions and underpin medium-term revenue visibility.

Jefferies maintained a Hold rating on RTX, raising its medium-term price target, reflecting confidence in the company’s strategic roadmap. Consensus estimates anticipate double-digit free cash flow growth in 2026, enabling continued dividend increases and share repurchase authorizations. In 2025 RTX returned over $5 billion to shareholders, representing more than 60% of free cash flow, and the board has signaled an intention to sustain capital returns as cash generation rises. This commitment, combined with disciplined leverage reduction—net debt to adjusted EBITDA at approximately 1.9x—supports a balanced approach to growth investment and shareholder distribution.